Consider the Basic AD/AS Model

question 38

Multiple Choice

Consider the basic AD/AS model.If major labour unions succeed in increasing wages across the economy,the AS curve will shift

• A)downward (to the right),reducing the price level.
• B)downward (to the right)and then return immediately to its original position.
• C)upward (to the left)and then return immediately to its original position.
• D)upward (to the left),increasing the price level.
• E)None of the above; there will no effect on the AS curve.

---

Definitions:

Decision Making

The process of identifying and choosing alternatives based on the values and preferences of the decision-maker.

Shelf-space

The amount of area or space available on shelves in a store allocated to display products.

Cereals Marketers

Professionals involved in promoting and selling grains such as wheat, maize, oats, and barley.

Eye-level

The optimal placement of products on shelves at supermarkets and stores to match the eye level of average consumers, enhancing product visibility and purchase probability.